Uganda: Govt Compensates 1,700 Families for DRC-Rwanda Road Link
Phillip Nabyama, East African Business Week (Kampala)

Construction of a key road linking Uganda to the Democratic Republic of Congo and Rwanda commences mid September after government last week started paying Ush2.3 billion (US$1.29 million) to 1,700 families to relocate from some 30kms of the 99 km road.

The works will then progress as another lot of 4,300 families are paid off with Ush3.7 billion ($2.07million) in two phases by UK based Mott MacDonald and indigenous Kagga & Partners to carry out the land survey and property valuation.

Up grading work on the Kabale- Kisoro- Bunagana/Kyanika road in western Uganda by Swiss based SBI International Holdings AG was scheduled to commence in May 2007 for 36 months.

The four months delay was a result of the tendered prices being significantly higher than the funds available in the initial loan agreement between the African Development Bank (ADB) and the Government of Uganda (GoU), the financiers of the project.

Initial road cost estimates were put at Ush79 billion ($44.38 million) by South African based BKS Consultants who were charged with the feasibility study in 2004.

However, when the bids were opened, the lowest price quoted was Ush146 billion ($82.02 million) and government, cognisant of the importance of the road in terms of commerce, travel safety and vehicle maintenance costs moved fast and applied for a supplementary loan from ADB.

The contractor of the Ush147 billion ($82.58 billion) works funded by ADB (90% for works) and GoU (10% for compensation) was procured through competitive international bidding under the two financiers guidelines.

Although Ush147 billion ($82.58 billion) is actual cost of the contract, other costs not factored in like fees for the resident engineer, push the total value of the contract to Ush152 billion ($85.39 million).

Other firms that were pre-qualified for the job included Strabag International (Germany) and Grinaker -LTA Ltd (South Africa).

"After paying off the first phase, we shall then submit a report to the government valuer before we can go on the subsequent phases of compensation to allow for further progress in works," Mr. Dan Alinange, the Road Agency Formation Unit's (RAFU) communications officer told East African Business Week.

RAFU is the government road agency soon to be transformed into the Uganda National Road Authority (UNRA).

The authority will be responsible for the management of the country's national classified road network

When in full throttle, the project is expected employ between 300- 500 people.

Completed, the road will open up Uganda's western towns to increased trade with Rwanda, DR Congo and even the capital, Kampala.

The project will involve earthworks, construction of a cement or lime stabilised sub-base, a crushed stone road base and asphalt concrete surfacing plus surface water drainage, erosion protection measures, road markings, signs and safety barriers.

The improved road network will also boost the mining of iron ore and lime in the sub- region and swell tourist arrivals at the Mgahinga National Park in Kisoro renown for gorilla tracking.

The bumpy road network through the two districts of Kisoro and Kabale has left the cost of travel expensive, dangerous and longer with journey times by public means to Kisoro from the capital at about six hours.

"Uganda supplies most of DR Congo with consumables and a better road would encourage traders from Rwanda and DR Congo even travel to the bigger districts like Mbarara," Eng. Felix Musinga, a RAFU project engineer told East African Business Week.

Kisoro and Kabale districts are about 14 and 94 kms respectively from the DR Congo border while Mbarara, about 283kms from Kampala is the most vibrant and influential town in the western part of the country.

RAFU, Alinange, says, has received assurances from the contractor that the road whose estimates for compensation also climbed from Ush2.5 billion ($1.40 million) to Ush6 billion ($3.37 million) would be completed by mid 2010.

"The contractor is fully mobilised and we expect actual physical works to start mid September after compensation for the first 30 kms is paid," Alinange said. Justifying the increase in compensation, Alinange said that the consultant did estimates years ago and yet property values have been going up over time.